Maxi Profits(HKTDC Electronics, Vol 06,2002)

Maxi Profits

Mini Radios

Canton Int'l Enterprise
Ltd's range includes an FM radio with auto-scan and torch functions (left)

"Turn up the functions" is the current mantra of Hong Kong's mini
radio producers. They know features like a torch, calculator or even a flashing
light add value to the basic product, along with more technical features such
as auto scanning for radio stations.

Tech Design Ltd, for example, only launched radios this year, having previously
concentrated on Euro converters for the gifts and premiums sector. It currently
has one mini radio, a triangular-shaped scan pocket radio with earpiece aimed
at the promotional market. The plastic and IC components are all sourced from
the Chinese mainland and the radios are produced at the company's factory in
Dongguan on the mainland.

Tech Design has started selling the radio to customers in Europe, particularly
France, Belgium, Spain and Germany, but has expansion plans. "We want to
launch our radios in Asia, especially the Japan market," explains company
spokeswoman Vicky Chan. "However, Japan uses different radio channels to
Europe so we need to develop new ICs that are suitable." Tech Design is
promoting its products through attendance at trade exhibitions, as well as mass
mailing and web mailing. The mini radio is priced at US$1.97, FOB Hong Kong,
for a minimum order of 1,000 pieces delivered in 45 days.

Fellow newcomer Canton Int'l Enterprise Ltd was founded just two years ago.
It produces around 50,000 mini radios per month at its 8,600-square-foot factory
in Shenzhen on the mainland. Adding functions is a major selling point, so Canton
includes radios with torches, compasses and emergency sirens. "We have
around 30 different styles," says sales manager Rita Wong. Key items include
three auto-scan FM radios with various functions, while another model features
a jack that can be connected to an MP3, CD or MD player, offering an alternative
to radio channels.

Canton exports to France, the UK, Spain, Italy, Sweden and the US. Components,
including ABS and ICs, are all sourced on the mainland. FOB Hong Kong prices
range from US$0.55-1.50, with a minimum order per style of 3,000 units.

Palito (HK) Electronics Co is also including more functions in its mini radios,
which company representative Samuel Tsang defines as being within 7cmx7cm with
a depth of 2cm. "The radios come with a variety of functions, including
torches and clocks," he explains. "Many have auto-scan functions."
The PVC casings and IC boards for the radios are sourced on the mainland, and
assembled in the company's factory in Shenzhen.

Europe is Palito's major market, with smaller quantities going to the US. "The
US market prefers AM/FM radios, while the Europeans go for FM only," says
Tsang. "Our marketing plan involves advertisements in the trade press,
and using a website to promote our products. Our products are popular in the
market because they are competitively priced and we provide a wide range of
choice."

Among the models is an AM radio with torch (FOB Hong Kong US$0.74), and an FM
auto-scan radio with clock priced at US$1.45 FOB Hong Kong. Minimum order is
3,000 pieces per model, delivered within one month of order confirmation.

Materials are sourced on the mainland, apart from the LCDs, which come from
Hong Kong and Japan. FOB Hong Kong prices range from US$1.80-2.30, for minimum
quantities of 5,000 pieces delivered in 15 days.

Chit Shun Enterprises Co Ltd also produces mini radios for the promotional market.
Senior marketing executive Penny Ng points out that the distinguishing feature
about its designs is the space allowed for imprints. "We find that American
customers like transparent colours at the moment, but the Europeans like the
silver finish," says Ng. The radios comprise ABS, sourced on the mainland,
and two kinds of ICs, one from the mainland and another supplied by Philips.

Chit Shun's 8,000-square-foot Dongguan factory has a capacity of 300,000 pieces
per month. FOB Hong Kong prices are available on request; minimum order per
style is 3,000 units and delivery time is 30 days.

"Our parent company has been in business for more than 25 years, so we
are well known in the market," notes Ng. "Our marketing plan also
includes advertising in trade publications and attending trade shows."

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